The part of each sale you keep after paying the costs of making the sale. Usually shown as a percentage.
Example
You sell a phone case for $20. It cost you $14 to buy from the wholesaler. You keep $6 from each sale. That $6 is 30% of $20, so your margin is 30%. A bigger margin means more breathing room when costs rise.
How it fits in
Different layers of margin reveal different things. Gross margin is revenue minus the direct cost of making the sale, divided by revenue. Operating margin folds in running costs. Net margin folds in tax and interest. Comparing margins to peers in the same industry is more useful than comparing across industries. Software businesses and grocery stores live in completely different margin worlds.
Where this is taught
Practise it on the platform
Related terms
When the money you earn from saving starts earning its own money on top.
Interest paid only on the original amount, never on the interest you have already earned.
Needs are the things that keep you safe and well. Wants make life nicer. Mixing them up is what empties most budgets.